Norilsk Nickel, Modernland price; Korea Exchange Bank details sale, new notes tighten

By Aleesia Forni

Virginia Beach, Oct. 18 - Russia's OJSC MMC Norilsk Nickel and Indonesia's PT Modernland Realty Tbk. priced notes during a slightly weaker session on Friday.

Still, Norilsk Nickel was able to price $1 billion of 5.55% senior notes due 2020 at par, tighter than earlier guidance of 5¾%.

Meanwhile, Modernland sold a $150 million issue of 11% notes due 2016 at par.

Korea Exchange Bank detailed its recent $200 million sale of 4 5/8% 10-year tier 2 subordinated notes on Friday, according to a market source.

The deal was sold with a spread of Treasuries plus 205 basis points, 30 bps tighter compared to original guidance.

The new bonds were trading better in the secondary market on Friday, a market source said.

He quoted the issue 18 bps tighter at 187 bps bid.

In another recent deal, Mexico's Comision Federal de Electricidad SA (CFE) sold $1.25 billion of 4 7/8% notes due 2024 with a spread of Treasuries plus 235 bps, according to a market source.

Norilsk sells tight of talk

Norilsk Nickel hit Friday's market with $1 billion of 5.55% senior notes due 2020 priced at par, according to a syndicate source.

The notes priced tighter than final guidance, which was set at the 5.6% area, tightened from earlier guidance of 5¾%.

BofA Merrill Lynch, Barclays, Citigroup, Sberbank and Societe General were the joint bookrunners for the Rule 144A and Regulation S deal.

The nickel and palladium producer is based in Moscow.

Modernland sells $150 million

In other primary action, Indonesia's Modernland Realty priced $150 million of 11% senior notes (//B) due Oct. 25, 2016 at par on Friday, according to a syndicate source.

Citigroup and UBS were the joint bookrunners.

Modernland is a real estate company based in Jakarta.

KEB prices tight

Korea Exchange Bank priced $200 million of 4 5/8% 10-year tier 2 subordinated notes (Baa1/BBB+/) with a spread of Treasuries plus 205 bps, according to a market source.

The notes were sold 30 bps tighter than original guidance.

BofA Merrill Lynch and Barclays were the bookrunners.

Korea Exchange Bank is based in Seoul, South Korea.

CFE details sale

Also on Friday, Mexico's Comision Federal de Electricidad detailed its pricing of a $1.25 billion issue of 4 7/8% notes due 2024 (Baa1/BBB/BBB+) at 99.427 to yield 4.948%, or Treasuries plus 235 bps, a market source said.

The notes priced at the tight end of talk, set in the area of Treasuries plus 240 bps.

Barclays, Citigroup and Goldman Sachs were the bookrunners for the Rule 144A and Regulation S deal.

CFE is a Mexico City-based electric company.

Poland orderbook

Poland's recent €700 million add-on to its existing 1 5/8% notes due 2019 reached an orderbook of roughly €1 billion, according to a company release.

The notes (A2/A-/A-) sold at 99.334 to yield 1.759%, or mid-swaps plus 43 bps, on Thursday.

"The received pricing is the tightest one not only for euro denominated bonds but for all international bonds priced by Poland since the collapse of Lehman Brothers," the release stated.

The bonds were placed mainly among European investors, with Germany accounting for 29% and Poland accounting for 26%.

About 12% of the orders came from Austria and 7% from France.

Belgium and the United Kingdom accounted for 6% of the orders respectively, while the shares of Switzerland investors accounted for 2%.

About 7% of the orders were from Asian investors.

Banks accounted for 62% of the orders, asset managers for 19%, pension funds and insurance companies for 13% and central banks accounted for 4%.

BNP Paribas, Deutsche Bank, HSBC and Unicredit were the bookrunners for the deal.

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